Ruth Kelly reveals that government will pay lenders £1.7bn to take Metronet out of administration
The government is giving £1.7bn to Metronet to help take the company out of administration.
Transport minister Ruth Kelly announced yesterday that the government was making the sum available to Metronet lenders.
She said: “The settlement gives London Underground the resources needed to manage Metronet's administration and move toward a more stable long-term footing and continue the work to maintain, renew and upgrade the underground."
Tim O'Toole, London Underground’s managing director, said: “Our priority remains the removal of Metronet from PPP administration as quickly as possible.
London Underground announced it will contribute an additional £1.7bn to the government’s sum.
“Nothing will hold up the transfer of Metronet to Transport for London once all the necessary steps in the administration have been taken.
“Once under Transport for London control, we will work with the mayor and government to restructure Metronet's contracts to deliver track, train and signalling upgrades to increase capacity, along with station and security improvements.”